Former Dallas Cowboy Sentenced in Mortgage Fraud Case

Posted By
Scott H. Palmer, P.C.

Former Dallas Cowboys linebacker Eugene Lockhart will spend more than four
years in prison, three years after he was initially arrested for his alleged
involvement in a mortgage fraud operation that resulted in losses of approximately
$20 million dollars. The 50-year-old Texas native pled guilty to
criminal charges stemming from the arrest in 2011.

Investigators say Lockhart and a number of other people illegally obtained
54 property loans by recruiting "straw purchasers" and manipulating
sales prices by falsifying their financial details. Prosecutors say the
conspirators established several real estate firms in order to help them
with the scheme, several of which had names referencing Lockhart's
time with the Cowboys. Courts have handed down guilty to verdicts to 10
accused participants, two of whom have been sentenced. The Dallas man
accused of designing and leading the scheme was sentenced to 10 years
in prison for bank fraud and conspiracy to commit wire fraud.

Lockhart's attorney asked for a sentence of two years of home incarceration
for the former NFL star, arguing that it would help with deal with his
numerous medical conditions; Lockhart suffered seven concussions during
his career, which have left him with persistent brain damage and several
other ailments. The attorney told reporters that Lockhart received an
unfair sentence due to his past with the Cowboys. He argued that his client's
fame "hurt the entire case."

While Lockhart's attorney has repeatedly played down the former linebacker's
involvement in the mortgage fraud, Lockhart himself apologized for his
participation in the scheme and explained that his behavior was "out
of character" with his values and upbringing.

After Lockhart's arrest in 2009, he was released from police custody.
However, he allegedly violated the terms of that release in 2011. He remained
in home incarceration from that time until his recent sentencing.

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*Scott Palmer is Board Certified in Criminal Law by the Texas Board of
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Certified in Family Law by the Texas Board of Legal Specialization (2004
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